Accounting Policies of Vegetable Products Ltd. Company

The Financial Statements are prepared on Historical Cost Convention.
Financial Statements are prepared in accordance with relevant
presentational requirements of the Companies Act, 2013 and applicable
mandatory Accounting Standards as , prescribed under section 133 of
Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules,
2014.

b. Basis of Accounting :

The accounts are prepared on the historical cost convention following
the accrual : system of Accounting except leave encashment to the
employees.

c. Revenue Recognition:

1. Sales are exclusive of sales tax/excise duty and net of returns and
are taken into account on passing of the title of goods, Sales on
consignment and expenses thereof are being accounted for in the year of
receipt of Account Sales from respective consignees.

2. Other income and expenses are accounted for on accrual basis except
mentioned : above.

d. Fixed Assets:

All fixed assets are stated at cost including incidental expenses
thereto. Revalued assets are stated at the values determined on
revaluation.

e. Depreciation:

1. Depreciation on fixed assets including revalued assets have been
provided based on useful life assigned to each asset prescribed in
accordance with Part - "C" of ; Schedule-II of the Companies Act, 2013

2. Depreciation on additions/deletions is being provided on pro-rata
basis from the date of such additions/ deletions,

3. Depreciation on Revalued Assets is adjusted with Revaluation
Reserve.

f. Impairment of Assets:

1. The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An ; impairment loss is recognized wherever
the carrying amount of an asset ¦ exceeds its recoverable amount. The
recoverable amount is the greater of the asset's net selling price and
value in use. In assessing the value in use, the estimated future cash
flows are discounted to their present value at the .. weighted average
cost of capital.

2. After impairment, depreciation is provided on the revised carrying
amount : of the assets over its remaining useful life.

g. Investments:

Investments of long term in nature are stated at cost. No diminution in
the value is recognized, if the same is not permanent in nature.

The company contributes to Provident Fund and ESI which are charged to
Profit . & Loss Account.

2. Definite Benefit Obligation

Gratuity is not funded and is provided for in the accounts on the basis
of actuarial valuation under projected accrued benefit method.

j. Income Taxes:

Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Income Tax Act 1961. Deferred income taxes reflects
the impact of current year timing differences between taxable income
and accounting income for the year and ' reversal of timing differences
of earlier years.

Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable . income will be available
against which such deferred tax assets can be realized.

In situations where the company has unabsorbed depreciation or carry
forward tax losses, all deferred tax assets are recognized only if
there is virtual certainty : supported by convincing evidence that they
can be realized against future taxable ¦ profits.

k. Earnings per Share :

Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
attributable taxes) by the . weighted average number of equity shares
outstanding during the year.

For the purpose of calculating diluted earnings per share, the net
profit/ loss for the < year attributable to equity shareholders and the
weighted average number of shares . outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.

1. Provisions, Contingent Liabilities and Contingent Assets :

A provision is recognized when an enterprise has a present obligation
as a result of ¦ past event; it is probable that an outflow of
resources will be required to settle the I obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted to
its present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.

Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.

The Company has only one class of equity share having par value of
Rs.10/- per share. Each holder of Equity share is entitled to one vote
per share.

In the event of liquidation of the company, the holder of equity shares
will be entitled to receive remaining : assets of the Company after
distribution of all preferential amounts. The Distribution will be in
proportion to the number of equity share held by the shareholders.

As per the records of the Company, including its Register of Members
and other declarations received from the shareholders regarding
beneficial interest, the above shareholders represents legal ownership
of shares Soft loan from West Bengal Government is secured against
residuary charges on the certain fixed assets of the company which
carries interest @ 6.75% p.a.. The above loan is repayable in eight
equal annual instalments commencing from 31.12.2000. There is
continuing default in repayment of above loan on the reporting date.
The Company has disputed the liability against the above loan towards
interest. [Refer Note No. 26 (ii)]

Mar 31, 2014

A. Basis of Preparation:

The Financial Statements are prepared on Historical Cost Convention.
Financial Statements are prepared in accordance with relevant
presentational requirements of the Companies Act, 1956 and applicable
mandatory Accounting Standards.

B. Basis of Accounting:

The accounts are prepared on the historical cost convention following
the accrual system of Accounting except leave encashment to the
employees

c. Revenue Recognition:

1. Sales are exclusive of sales tax/excise duty and net of returns and
are taken into account on passing of the title of goods, Sales on
consignment and expenses thereof are being accounted for in the year of
receipt of Account Sales from respective consignees.

2. Other income and expenses are accounted for on accrual basis except
mentioned above

d. Fixed Assets:

All fixed assets are stated at cost including incidental expenses
thereto. Revalued assets are stated at the values determined on
revaluation.

e. Depreciation

1. Depreciation on fixed assets including revalued assets have been
provided on written down value method at the rates prescribed in
Schedule XIV to the Companies Act,1956 and Depreciation on
additions/deletions is being provided on pro-rata basis from the date
of such additions/deletions,

2. Depreciation on Revalued Assets is adjusted with Revaluation Reserve

f. Investments:

Investments of long term in nature are stated at cost. No diminution in
the value is recognized, if the same is not permanent in nature.

The company contributes to Provident Fund and ESI which are charged to
Profit & Loss Account.

D. Definite Benefit Obligation

Gratuity is not funded and is provided for in the accounts on the basis
of actuarial valuation under projected accrued benefit method

k. Income Taxes:

Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Income Tax Act 1961. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized.

In situations where the company has unabsorbed depreciation or carry
forward tax losses, all deferred tax assets are recognized only if
there is virtual certainty supported by convincing evidence that they
can be realized against future taxable profits.

j. Earnings per Share:

Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
attributable taxes) by the weighted average number of equity shares
outstanding during the year.

For the purpose of calculating diluted earnings per share, the net
profit/ loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.

k. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.

Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.